Last week, California Gov. Gavin Newsom proposed cutting $20 million from a landmark state initiative supporting local journalism, citing intensified financial pressures stemming from a projected $11.9 billion budget shortfall.
Called the Transformation Fund, launched in partnership with Google, the program was expected to provide $30 million in state funding to community media outlets for 2025-26. That figure has now been reduced to $10 million, the Department of Finance confirmed Wednesday.
“The sole reason for the reduction is more limited/fewer resources than projected in the January budget,” said Finance Department spokesperson H.D. Palmer.
The funding was part of a broader $250 million, five-year agreement between Google and the state, forged in response to the California Journalism Preservation Act proposed by Assemblymember Buffy Wicks (D-Oakland). The original legislation would have required Google to pay into a fund supporting news outlets based on journalist employment numbers. While the law was not enacted, the deal led to joint state and private support for local newsrooms and included a controversial $68 million AI initiative.
Rebuild Local News President Steven Waldman criticized the proposed cut: “Cutting it by two-thirds moves California in the wrong direction at a time when local journalism is collapsing across the state.”
Black Media leaders, however, said Newsom’s downsized $10 million investment –made at a time the state faces numerous uncertainties and constraints — is a notable first step to addressing the ongoing crisis in American journalism.
“While the Governor and Legislature face the very real challenge of closing a significant budget deficit, I deeply appreciate the state’s initial investment and Assemblymember Wicks’ continued leadership,” said Regina Wilson, Executive Director of California Black Media (CBM).
“This moment calls for bold thinking to protect one of the foundational pillars of our democracy — independent journalism. A well-informed public is not a luxury; it’s a necessity. It’s how people hold power to account, engage with their government, and shape the rules that govern their lives,” Wilson added.
The journalism funding rollback follows broader state cost-cutting efforts and the Governor warning of strained public resources as economic challenges mount.
The journalism fund is intended to help struggling newsrooms that have faced financial hardship, leading to fewer reporters covering vital civic issues. As budget negotiations begin, advocates are urging lawmakers to reassess the media funding cut, warning it could deepen the information gap in underserved communities.
